In an interview to CNBC-TV18, Shashi Kiran Shetty, executive chairman, Allcargo Logistics shares his views on the company’s performance and his outlook for the upcoming quarters.Below is the verbatim transcript of Shashi Kiran Shetty's interview with Reema Tendulkar and Sumaira Abidi on CNBC-TV18.
Reema: You all derive majority of our revenues more than 80 percent of your revenues from the multimodal transport operations or MTO. That is done quite well for the company so far. In fact in the first half of the fiscal year it plucked in revenues of close to about 40 percent. Can this run rate continue even going ahead or should be expect some tapering in the growth?
A: Most of the growth that we have achieved in our NVOCC business is through acquisitions in different market at different intervals at different time lines. We know are the market leaders in this business globally and we have still lot of headroom to grow in this business. Also on top of the main business the core business of less than container load (LCL) we have also now started focusing a lot into the full contain load business which is of gigantic opportunity. That is a business we are also pursuing at the moment and increase the market share globally in that business. So we do anticipate a significant growth in coming years.
Reema: What could be a sustainable growth rate for All Cargo Logistics for the consolidated basis also as well as for MTO?
A: So far if you look at the last six to seven years we have grown at a CAGR of 28 percent and we are hoping that we will continue to perform in similar lines because the opportunities are huge in this space and geography is unlimited. We do business allover the world and we are going to bring lot of focus into India in the coming few years. Especially with the goods and service tax (GST) getting rolled out the e-commerce plat, the coal chain logistic play, the Make in India vision that the Prime Minister has outlined for all of us and obviously the infrastructure is another space where All Cargo has got a significant presence.
So we have multiple verticals where we can play our business. As a company if you look at our track record we have so far done 11 acquisitions and all the acquisitions have created value for the company and to the shareholders. So we do not see any reasons why that we can not grow and we as a matter of fact are more hopeful for company’s prospect in the future.
Sumaira: Any eminent threat that you face from the railways entry into this multimodal logistic hub?
A: It will be some time away and I do not see the railway logistic hub getting into operations in the very near future. In any case Container Corporation of India is very active in the inland logistic business. They will only do development of the logistic parks on the basis of identifying opportunities. We as a company do not have a significant presence in the inland logistic markets in the Inland Container Depot (ICDs). We do not see any significant threats for our business in short by railway coming in to this space.
Reema: Any acquisitions that you are currently considering which could be closed in a next one year?
A: There are opportunities which we are pursuing I can not disclose anything at the moment but that is one way in which the company has always looked at delivering growth for the shareholders and for the company. We are continuing to look at such opportunities.
Sumaira: Can you take us through if you have already any clientele in e-commerce space or anyone you are looking to target?
A: We are in some discussion with the few professionals to come in and look at how we can get into the e-commerce play. There are some relationships with the large e-commerce players these professionals have and we as an organisation are also putting up a business plan to move into this space in very near future. We will announce when we are ready to go with that.
Reema: That could happen in the next six months?
A: Hopefully yes we are working towards it.
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